Governance and Audit Committee

RESOLVED: That the Governance and Audit Committee Work Programme was acknowledged.

The Chief Officer for Finance and IT submitted a report (COFI/16/25) that requested the Governance and Audit Committee to approve the Internal Audit Strategy 2025-28,Internal Audit Mandate and Charter for 2025-26 and the Internal Audit Plan 2025-26 and to agree the amendments to the Governance and Audit Committees Terms of Reference to reflect the new Global Internal Auditing Standards in the UK public Sector. The Head of Service for Internal Audit and Technical introduced the report on the updated UK public sector auditing standards, effective from 1 April 2025 and highlighted that this marked the first use of the new format. Key changes included: a) The Internal Audit Strategy, which outlined a three-year framework for audit planning and delivery. b) The Mandating Charter replaced the previous Internal Audit Charter with minor updates. c) The Internal Audit Plan, now separated from the charter, followed a risk-based approach. d) Terms of reference have been updated to reflect the new standards, with future revisions as needed. Members asked a number of questions which were responded to accordingly, and the following points were highlighted during the detailed debate:- · It was clarified that while certain audits, such as grant audits, occurred annually, their scope and coverage varied based on identified risks. · Members discussed the existence of a medium or long-term audit plan. Although, some areas followed cyclical planning, a formal multi-year plan was not currently presented, though long-term considerations were factored into audit preparation. · The importance of Counter Fraud training for council officers and elected members was highlighted. · Mandatory training was in place, with ongoing efforts to update and improve the programme. · The council collaborated with other authorities to share insights and best practices in fraud prevention. · It was agreed that elected members should have access to fraud awareness training, and communications will be enhanced to raise awareness of these opportunities. RESOLVED:- (i) That the Governance and Audit Committee approved the Internal audit Strategy 2025-28, the Internal Audit Charter 2025-26 and the Internal Audit Plan 2025-26. (ii) Agreed the amendments to the Governance and Audit committees Terms of Reference required, removing referencing to the previous Standards (PSIAS) and referencing the new Standards.

The Chief Officer for Finance and ICT submitted a report (COFI/18/25) that requested that the Committee considered the Head of Service Audit and Technical’s Internal Audit – Annual Report 2024-25 (Appendix 1) as to the overall adequacy and effectiveness of the Council’s framework of governance, risk management and control. The Head of Service for Internal Audit and Technical presented the Counter Fraud Annual Report, prepared under previous audit standards as it covered the period before 1 April 2025. It was highlighted that:- · The report provided an annual opinion on the Council’s governance, risk management, and control framework, confirming they were generally adequate and effective. · Key findings included ten completed planned audits, one unplanned audit, and ten deferred audits, which will be addressed in the 2025–26 plan. · A facilities management audit received an amber assurance rating. The following was discussed:- · Concerns were raised about the delays in confirming the action plan response and target dates for the facilities management audit. · Reporting processes have a time lag, but an update on the facilities management audit was provided to internal audit. · The Facilities and Management Lead confirmed progress on priority recommendations, including completed school building condition surveys and ongoing asset assessments, dependent on funding. · Prioritisation for council building completion was underway, but funding availability remains a key factor. · Concerns were raised about deferred audits and resource limitations within the Internal Audit team. · Ten audits have been carried forward into the 2025–26 plan due to staff absence, but the risk-based approach ensured adequate coverage. · Deferred audits did not reduce scrutiny but helped maintain audit priorities. · A drop in chargeable time and increased notional costs were linked to long-term staff absence, affecting efficiency. · Follow-ups on audits receiving Amber or Red ratings were built into the audit plan. · Concerns about internal audit capacity led to suggestions that additional resources could improve efficiency and reduce costs. · Resource limitations remain an issue, but external support will be used when necessary to manage risk effectively. · The role of internal audit in supporting departments with economy, efficiency, and effectiveness improvements was discussed. · Advisory audits and participation in task and finish groups help refine processes and improve value for money. · Members agreed that audit processes should continue to be monitored for efficiency and effectiveness. · Concerns were raised about a 20% shortfall in audit delivery and its impact on assurance. · Audits were risk-based, with deferred audits prioritised to ensure that key risks were being addressed. · A reduction in staff, including the retirement of an audit lead, prompted discussions on restructuring and external support to maintain effective delivery. · A future training session was agreed upon to clarify audit procedures, whistleblowing connections, and risk assessments. · Concerns were raised about fraud reporting, particularly within schools. · Chief Officers received regular fraud risk updates, with ongoing training and communication efforts. · Fraud reporting processes have been streamlined, leading to a significant increase in cases since the last report. · Fraud involving elected members follows standard reporting protocols, separate from housing benefits or DWP-related fraud. · An online fraud reporting form has been introduced to simplify reporting. · The committee resolved to continue discussions and implement additional training sessions to strengthen understanding. RESOLVED:- That the Committee noted the Head of Service Audit and Technical’s opinion that, in most of the areas examined, the Council’s framework of governance, risk management and control was generally adequate and effective in achieving the Council’s objectives.

The Chief Executive submitted a report (CE/11/25) which provided assurance to the Governance and Audit Committee (GAC) in relation to the implementation of actions in response to external regulation and inspection. The Corporate Team Manager, Performance Improvement & Partnerships, introduced the assurance report on implementing recommendations from external regulation and inspection reports. It was highlighted that: a) The Council was overseen by regulators such as CIW and Audit Wales, requiring appropriate action in response to their findings. b) Reports with recommendations were submitted to regulators and then presented to this committee for review. A discussion pursued and the main points were raised:- · Members raised concerns about the status of actions related to older people's care placements under Betsi Cadwaladr University Health Board and whether similar challenges affected all North Wales councils working with the health board. · It was noted that data from other regions under different boards was unavailable. Further clarification on potential intervention by an overarching body was suggested. · Questions were raised about broader assurance on outstanding recommendations, including the Social Enterprise and Tackling Poverty in Wales action plan. · The committee discussed whether regulators sought assurance re response monitoring, with Audit Wales confirming that they currently rely on n local authorities’ processes but that follow-up is a growing priority for them. · Historical audits were previously tracked through council updates, and more structured follow-up will be integrated into future audits. · Members debated whether an exception-based assurance report sufficiently tracked actions. · A table listing completed and outstanding items was suggested for better oversight, but officers assured Members that the current process effectively prevents omissions. · Officers confirmed that Audit Wales reports and regulatory responses were centrally managed to reduce the risk of oversight. · Officers clarified that senior leadership (SLT) reviewed outstanding actions, challenged departments when needed, and ensured completion through departmental processes. RESOLVED: - That members of the GAC were assured that the implementation of actions in response to external regulation and inspection was monitored and reported to Senior Leadership Team and GAC.

The Audit Wales Manager for performance and audit introduced the report, providing a routine update on the work programme. It was noted that: · Previously presented quarterly, future updates will likely be reduced to twice a year alongside audit plans and reports. · The report detailed progress on local performance and financial audits, ongoing national studies, and updates from Estyn and CIW. · No formal findings were presented, focusing instead on insights and expectations for the coming year. RESOLVED: - That the Audit Wales Work Programme and Time table – Quarterly update 31 March 2025 was noted by the Governance and Audit Committee.